Which ecosystem projects are worth paying attention to as Base Layer 2 rapidly develops?

23-07-17 21:00

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Original author: AlEx Wacy

Translated by: Deep Tide TechFlow

Coinbase, a crypto giant with a market value of $20 billion, has unparalleled global influence. Its incubated chain - Base, is expected to become a catalyst for the next important event in the cryptocurrency field. Currently, the ecosystem is rapidly expanding on a large scale. Let's take a closer look:

DackieSwap

DackieSwap is the first native DEX on Base, and its main feature is StableSwap, which is a fork of the Curve Finance protocol that provides users with optimized trading paths. DackieSwap has attracted a large number of users in the past 30 days, with a liquidity of $730 million and a trading volume of $42 million. DackieSwap aims to provide users with a seamless trading experience without the need for registration or complicated operations. Users only need to connect their wallets to seamlessly trade any token on the Base chain in seconds. In addition, DackieSwap is also committed to helping users earn passive income through cryptocurrencies and discovering early opportunities in the ecosystem through DackiePad (Launchpad).

MES Protocol

MES (Multi-rollup Exchange Solutions) aims to create a trading exchange solution that enables liquidity flow and seamless asset transfer between Rollups, as well as integrating token exchange order books across Rollups. Its goal is to provide a truly decentralized cross-Rollup DEX (decentralized exchange), which sets it apart from other DEXs deployed on different Rollups.

MES provides a unified order book and the ability to exchange assets and data across multiple Rollups, allowing users in the L2 ecosystem to enjoy the trading experience of centralized exchanges (CEX). Users can benefit from both security from Ethereum L1 and high throughput and low cost from L2 Rollups.

The MES protocol runs on Rollup, which reduces the computational requirements for executing transactions, compresses transactions, and thus reduces the gas consumption. MES utilizes the security of Ethereum as well as the scalability and efficiency of Rollup.

Volmex

Volmex is a decentralized perpetual exchange (DEX) that has launched a cryptocurrency volatility index, namely the Volatility Token v1. Volmex subsequently launched the BVIV index (Bitcoin Volmex Implied Volatility Index) and the EVIV index (Ethereum Volmex Implied Volatility Index) to track the 30-day implied volatility of Bitcoin and Ethereum, respectively. According to official data, there are more plans for the future.

Volmex's goal is to provide users with a simple way to access the volatility of cryptocurrencies, while offering a range of use cases, including hedging, speculation, and market indicators.

Volmex's volatility index and tokens provide users with a tool for hedging, speculating, and developing trading strategies in the cryptocurrency market. These indices can help users understand the level of market panic and provide information about future market trends.

Perennial

Perennial is a DeFi derivative protocol used for trading price exposure. It is an automated market maker (AMM) for peer-to-peer pools, providing leverage exposure for traders and earning fees for liquidity providers.

As a derivative product AMM, Perennial provides services by hedging against any trader's position directly through oracle prices and with a floating funding rate. Traders deposit collateral to obtain leveraged exposure to different price sources, while liquidity providers provide funds in the protocol and earn fees by accepting trades from traders. LP and traders will continue to settle, with the losing party paying the winning party.

One of the characteristics of Perennial is zero price impact, which means that trades can be directly executed at the oracle price regardless of the trading volume. In addition, trades are settled in US dollars instead of cryptocurrencies, which is consistent with the most popular cryptocurrency derivatives. Perennial is an efficient protocol that minimizes costs for traders and liquidity providers. It is also designed to meet the needs of developers, providing low-cost, fully on-chain, and easy-to-integrate infrastructure. Liquidity providers can customize their offerings according to their needs, with high leverage (up to 50x) and fully customizable risk exposure and hedging strategies. Furthermore, Perennial is a permissionless protocol for market creation, integration, and composition.

Horiza

Horiza is a decentralized exchange (DEX) powered by Base. It combines the advantages of Uniswap v3's concentrated liquidity algorithm with the ve(3,3) design proposed by Solidity to ensure consistent benefits for participants.

Horiza's goal is to solve two challenges faced by most AMMs. The technical challenges include improving liquidity deployment efficiency, reducing slippage and impermanent loss, and incentivizing trading pairs that generate transaction fees. The mechanism design challenge is mainly that most protocols are almost entirely focused on incentivizing liquidity provision rather than generating transaction fees. Horiza addresses these two challenges by introducing Solidity's ve(3,3) model and combining it with Uniswap V3's concentrated liquidity, thus combining the advantages of capital efficiency and incentive structure.

Overall, Horiza will utilize the concentrated liquidity, automatic position management, and ve(3,3) mechanism of Uniswap v3 to provide users with a more efficient trading experience and better incentive mechanism.

Backed

Backed is a platform for issuing Backed Tokens, which fully supports the tokenization of real-world assets and has a $12 million asset management scale.

Backed Tokens are ERC-20 tokens that represent ownership of structured product units. Each token is a fully collateralized tracking certificate unit that tracks the listed value of a specific transaction security (underlying asset) and is fully supported by that security. These bTokens are fully compliant tokens under Swiss law and can be freely transferred on the blockchain. They can be sold directly to qualified investors and licensed dealers through the Backed platform.

Backed Tokens provide investors with an opportunity to access real-world assets on the blockchain through tokenization of these assets.

Additionally, the official statement indicates that Backed will not issue native tokens at present.